IPhone 4 is stuck on the connect to iTunes screen and won't activate?

My friend wanted me to back up his iPhone 4 but when he brought it over it seemed like it was in recovery mode and it is stuck on the connect to iTunes screen. He never connected the iphone 4 to iTunes before this and I know he didn't tamper with it. When I try to sync the iPhone 4 with iTunes it accepts the iPhone but I keep getting a message that says that " the iPhone cannot be activated and may be damaged & to bring it in to the nearest Apple Store" this makes no scense cause the phone has not been tampered with at all & it seems that everything on the start up menu is working fine, the touch screen, voice prompts, the volume up/down, vibrate, home and sleep/power buttons are all operating properly? The only thing is that he hasn't payed his bill and AT&T shut his service off, but I don't think that this would cause the phone to go into recovery mode. What does cause the iphone-4 to go into recovery mode and why would I even have to activate the iPhone-4 if it was already set up? If this has happend to anyone else or if anyone can help me out on this one, I would appreciate it even if the answer ends up being that he needs to take his iphone-4 into the Apple Store or AT&T because the iphone-4 is under 6 months old and like I said has no physical damage at all? Help anyone???

well I only have a 3gs so I'm not all up on the current but the way I see it you have a few option's depending on the route you want to take,
If you don't mind loosing what's on the phone (if you want to try save info try 2 before 1)
1. (Best Chance) put the iphone into DFU mode, (1. turn off iphone while plugged into computer, then hold the sleep button count to three 2. then hold the home button whiile still holding the sleep button, count to 10 3. release the sleep button but keep home button,) then itune should detect the phone and offer to restore it, this should restore it
1b.  I would repeat above with a active SIM card, doesn't make a difference where I live but you never know
1c.  I wouold try On difference Computer (rule out bad download, currupt driver's etc etc
If you want to try save the information then I would say you are doing some of this at your own risk as I'm not sure about apple rules regarding these, the steps should all be legal but might void your warrently so be warned!
2. Download a utility call Tinyumbrella ( http://thefirmwareumbrella.blogspot.com/ ) and have you phone connected and run the program, on the left should be a list of connected devices (make sure itunes is closed) click on the device connected and on the right click exit recovery, hopefully your device will reboot normally, (there's also an fix recovery option but I've never used that)
2b this option is to jailbreak your phone as that "hacktivates" your phone if using this option and it works I suggest a FULL backup then follow option 1 above, download a program call Redsn0w ( http://blog.iphone-dev.org/tagged/redsn0w ) and follow the instructions that come with it, again if this works I suggest a full backup then follow option 1 about even if you do wish to stay "jailbroken"
this advice is just some idea's as you have given no information on what happen or firmware involved current mood of phone ^^ I can only hazard a guess at the problem< if after these steps is doesn't work i suggest trying to bring it back and get someone professional to look at it
Message was edited by: Nightweb
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